The Psychology of Privacy - What Can Behavioral Economic Contribute to Competition in Digital Markets?
International Data Privacy Law, Volume 8, Issue 3, Pages 240–252
15 Pages Posted: 18 Dec 2018
Date Written: November 1, 2018
There is often a discrepancy between what consumers expect from firms regarding the way their personal data should be handled and how people actually behave when a firm misuses such data and violate their data protection rights. This was put in evidence in the aftermath of the Cambridge Analytica scandal: consumers are genuinely concerned about how their data is exploited by firms like Facebook, but their behaviour (i.e. continuing to use the social network) does not seem to correspond to those concerns due to the presence of internal and external factors. The impact of this discrepancy between privacy expectations in abstracto and in concreto on the enforcement of market-relevant legislation such as data protection, consumer and competition laws has not been sufficiently explored. This contribution looks at whether behavioural economics could provide insights about the value that people attribute to their privacy in view of informing competition law enforcement in data-driven markets.
Keywords: Behavioural Economics, Rational Choice Theory, Competition, Merger, Abuse of Dominance, Unfair Commercial Practices, Privacy, Personal Data
JEL Classification: A00, A1, A10, A12, A13, D11, D21, K00, K10, K12, K21, K42
Suggested Citation: Suggested Citation